Premise: The equity market tends to trade on emotions.  Stocks get
over-priced based on momentum and trader's emotions on certain stocks.
 Then it is only a matter of time before they go back down to a more
sane P/E level since their price is not based on any underlying
financial reasoning.  The internet boom and bust is only the latest
and greates example.

I am wondering if there are any websites that address this very issue.
 When I did my own search "market psychology" kept popping up;
however, every website that I visited treated "market psychology" as
way for an individual trader to stay focused on their trading
strategy.  Which is NOT what I am looking for.

What I am looking for is a website that describes methodologies used
to trade against market psychology or offers a fund or advice column
based off of this premise.

Hi! Thanks for the question.

What you are actually looking for is a ?Contrarian Investing?
strategy. This is the investment lingo for going against popular
market psychology. I have found the following articles and websites
that discuss this concept plus books and funds that can help you in
developing such a strategy for your investments.


Articles/Websites:

?Defining ?contrarian investing??
http://www.westshorepub.com/biznews/lib/july97/defining.html 

?Contrarian Investment Strategies: The Next Generation?
http://www.travismorien.com/FAQ/shares/contrariantng.htm 

?Contrarian Investing?
http://www.deanlebaron.com/book/ultimate/chapters/contrary.html 

?Contrarian Investing is a Rational Approach to Investing?
http://www.contrarian-investing.com/contrarian_investing.htm 

?Contrarian Investment Philosophy?
http://www.powerinvestor.com/Primer/Stock-Investing-Theories-and-Strategies/Contrarian-Investment-Philosophy.htm

?The low P/E, P/CF, P/D and P/BV Strategy?
http://www.contrarian-investing.com/contrarian_strategy.htm

?Do you like contrarian investing??
http://www.the-adviser.com/Stocks/contrarian.htm

?Contrarian Investing?
http://www.fool.com/news/foth/2001/foth010507.htm 

?AN EXAMINATION OF CONTRARIAN STRATEGIES IN THE USA AND MEXICO?
http://cursos.itam.mx/mhess/download/studentprojects/ContrarianStrategies.PDF

?Contrarian investment strategies using financial ratios?
http://www.behaviouralfinance.net/glamour_value/Sker00.pdf

?Counter stockwise?
http://216.239.57.104/search?q=cache:fd43X4UszRgJ:cbs.marketwatch.com/news/story.asp%3Fguid%3D%257BA7C43F95-E1DB-4A4F-934A-798EA9D108A0%257D%26siteid%3Dgoogle+contrarian+strategy++&hl=en&ie=UTF-8

?Contrarian Chronicles? (article collection)
http://moneycentral.msn.com/content/p21796.asp

?Alien in a Crowd ?
http://www.wallstraits.com/main/article.asp?id=165 

ContraryInvestor.com
http://www.contraryinvestor.com/

?A Further Re-Examination of the Contrarian Investment Strategy:
Evidence from Multivariate Tests? (An article against contrarian
investing)
http://econwpa.wustl.edu/eps/fin/papers/9307/9307001.pdf

?Mean Reversion of Size-Sorted Portfolios and Parametric Contrarian Strategies?
http://www.be.wvu.edu/divecon/econ/balvers/MFGROPP.pdf


------------------------------
BOOKS about Contrarian Investing:

You can find a good list of books plus reviews at the Amazon website.
Here is a link to the list of contrarian investing books.

Amazon: Contrarian Investing Books
http://www.amazon.com/exec/obidos/search-handle-form/102-9411835-4959360 


-------------------------------
FUNDS: with Contrarian Investment Philosophy

FBP Contrarian Equity Fund
http://www.fbpinc.com/pdfs/MFEquityProfile%20-%2012-31-03.pdf

Dreman Value Management 
http://www.dreman.com/web_site_pages/65/10/default.asp?header=65&link=10

Fiduciary Management Inc.
http://www.fiduciarymgt.com/html/fmivx_home.html

FPA Capital Fund Inc.
http://www.fpafunds.com/capitalfund_strategy.asp

CLIPPER FUND
http://www.clipperfund.com/aboutcf.html

Lighthouse Capital Management
https://www.lighthousecapital.com/LIGHTHOUSECAPITAL/WEB/me.get?WEB.websections.show&SCH5290_194

Orbis Mutual Funds
http://www.orbisfunds.com/invqa.html

Parnassus Investments
http://www.parnassus.com/Parnassus_Fund.html

Tocqueville Asset Management
http://www.tocqueville.com/pcs/pcs_invph.shtml

RS Investments
http://www.rsim.com/funds/cf.html 


Search terms used:
Contrarian investing strategy philosophy funds

I hope these links would help you in your research. Before rating this
answer, please ask for a clarification if you have a question or if
you would need further information.
                 
Thanks for visiting us.                
                 
Regards,                 
Easterangel-ga                 
Google Answers Researcher

Excellent answer!  Very thorough and prompt!